In this article, Bajaj Finance Card we will discuss everything about the Bajaj Finserv EMI card, including why the RBI had banned it in November 2023, the recent lifting of this ban in May 2024, the pros and cons of the card, who should apply for it, and who should avoid it.
Why Was the Bajaj Finserv EMI Card Banned by RBI?
The RBI had banned the Bajaj Finserv EMI card because Bajaj Finance was not providing a ‘Key Fact Statement’ to its customers. This one-page document clearly mentions all details such as the tenure, interest rate, and other charges. Without this document, customers were not fully informed about the terms and conditions of their loans.
What Did Bajaj Finance Card Do to Lift the Ban?
In March 2024, Bajaj Finance appealed to the RBI, stating that they were now following all the guidelines. The RBI accepted this appeal and lifted the ban completely in May 2024.
How Does the Bajaj Finserv EMI Card Work?
When you buy a product using the Bajaj Finserv EMI card, you can convert the cost into easy EMIs. For example, if you buy a phone worth ₹25,000, you can choose to pay it in six installments with zero interest. However, the actual cost includes an interest rate of 12-14% paid by the product manufacturer, which is why it is termed ‘zero cost’ for the customer.
Hidden Charges and Fees
Although the card is marketed as a zero-cost EMI card, there are several hidden charges:
- Activation Fees: There is a one-time fee for activating the card.
- Convenience Fees: A fee of ₹99 + GST is charged on the first EMI transaction each year.
- Mandate Registration Fees: ₹99 + GST for setting up the auto-debit mandate.
- Credit Score Check Fees: ₹6 for each credit score check when availing EMIs.
Additional Charges
- Limit Enhancement Fee: If you want to increase your card limit, you will be charged ₹99 + GST.
- Penalty for Late Payments: If you delay your EMI payments, a penalty of over 50% per annum is charged.
- Mandate Rejection Fee: If the auto-debit mandate is rejected for any reason, a penalty of ₹450 + GST is imposed.
Customer Experience and Cross-Selling
One major complaint from customers is the aggressive cross-selling of other Bajaj Finance products. Bajaj Finance often uses its existing customer base to sell additional products like insurance and loans. This can be quite irritating as customers receive frequent calls for products they may not need.
How to Apply for the Bajaj Finserv EMI Card?
The application process for the Bajaj Finserv EMI card is straightforward:
- Visit the Website: Go to the Bajaj Finance website and click on the EMI card section.
- Enter Mobile Number: Enter your mobile number and click on ‘Get It Now.’
- OTP Verification: Verify your OTP to proceed.
- Fill Personal Details: Provide personal details like name, date of birth, PAN, and PIN code.
- KYC Verification: Complete the KYC verification using your Aadhaar details.
- Pay the Activation Fee: Pay the one-time activation fee using net banking, debit card, or credit card.
- Set Up Mandate: Set up the auto-debit mandate for EMI payments.
Who Should Apply for the Bajaj Finserv EMI Card?
- Frequent EMI Users: If you use the EMI facility three to four times a year and have an average ticket size of ₹10,000 to ₹15,000, this card can be beneficial.
- Timely Payers: If you pay all your dues on time, the card can be a good option.
Who Should Avoid the Bajaj Finserv EMI Card?
- Infrequent Users: If you use the EMI facility only once a year, the charges may outweigh the benefits.
- Late Payers: If you often delay your payments, the penalties can be substantial.
Let us know in the comments section whether you are applying for this card or not. If you are already using this card, share your reviews with us.